In collaboration with:
Ernst & Young
business risk report
The top 10 risks for global business
The 2009 Ernst & Young business risk report — The top 10 risks for global business
About this report
Ernst & Young continues to be heavily engaged around the world in seeking to identify
leading practices in the area of risk management. Properly approached, the process of risk
management can add value even if, fortunately, the feared events never happen. In working
through scenarios and impact analysis, companies may find many opportunities to tighten
processes and controls that can make them more agile and able to operate more effectively,
in whatever market conditions arise.
Our work with companies around the world suggests that there is a body of leading risk
management practice emerging, but that many companies are still doing too little in this
area. Our research has shown that, while strategic risks have become more important,
companies have been focusing on the easier-to-manage areas of operational risks.
In looking to general practice, the implications for different sectors can be blurred.
One person’s challenge is frequently someone else’s market opportunity. Even within
each sector, the risks for each company may vary. Risk management must be carried
out at the company level.
We have consulted widely but this is not an exhaustive list of risks. Inevitably it is a snapshot
of the risks we see at this time. We encourage you to read this report in a questioning
manner. Do you agree with the risks? How do they impact you? We hope that some of the
risks identified surprise you and some of the weightings that we attached to them in the
rankings differ from those that you would apply. You should have your own equivalent of
a risk radar and your own ongoing dialogue around this, within your own organization.
We believe that company leadership must:
Conduct an annual risk assessment that defines key risks and weights probability and
impact on business drivers. The risks in this repo